USAA homeowners insurance in Florida

[NormanBuntz]

Latest information I just learned about USAA homeowners insurance in Florida. Where some or most companies formerly allowed a homeowner to insure a home for 80% of its calculated replacement cost and STILL have replacement cost coverage that would cap at plus 25%, now USAA has limited that to 96% of the formulated replacement cost in Florida and California ONLY. They say it's a result of increasing claim costs and risks for residents of those states. Just another example of inflation in the USA.

 

[demarpaint]

Latest information I just learned about USAA homeowners insurance in Florida. Where some or most companies formerly allowed a homeowner to insure a home for 80% of its calculated replacement cost and STILL have replacement cost coverage that would cap at plus 25%, now USAA has limited that to 96% of the formulated replacement cost in Florida and California ONLY. They say it's a result of increasing claim costs and risks for residents of those states. Just another example of inflation in the USA.

From what I've been reading there is a lot of insurance fraud in Florida which is driving the cost up too.

 

[GON]

 

[daves87rs]

I was told by a friend who has USAA that rates are going up across the board to help cover all of that…..

 

[MrHorspwer]

Let me get this straight: People who live where a massive storm blows through every three years and wrecks havoc amongst 1/3 of the homes in the state are surprised that their insurance rates are going up?

Seems like maybe Florida should invest a little more in their state's education system.

 

[NormanBuntz]

From what I've been reading there is a lot of insurance fraud in Florida which is driving the cost up too.

Most of the insurance fraud centers on home roof replacements, a scheme orchestrated by roofing companies who do a roof inspection and claim your roof has prior storm or hail damage setting up a new roof covered by your insurer. That fraud has dwindled now that the Florida governor and legislature have introduced new legislation, but a lot of bogus claims have already been paid.

 

[NormanBuntz]

Let me get this straight: People who live where a massive storm blows through every three years and wrecks havoc amongst 1/3 of the homes in the state are surprised that their insurance rates are going up?

Seems like maybe Florida should invest a little more in their state's education system.

Like that in Detroit? You missed the point of my post. It's about a change in underwriting policy affecting only two states.

 

[Dave Hess]

Stay out of Florida, it’s paradise lost.

 

[Tharber]

I've lived on the East Coast (Brevard County) of FL since 1977. We've never had any storm damage. My last house was on the river on one side and across the street on the other, I think I lost 3 ridge shingles one time and it was due more to poor installation than wind.

Norman hit the nail on the head, scam roofing companies threatning to sue insurance companies due to made up hail damage. Home insurance is not a home warranty but it is being treated that way here. All of my current neighbors pulled this several years ago, all have since been dropped by their carrier and their rates are double and triple mine. I've had the same carrier for 20 yrs, zero claims (our roofs here are approx 20 yrs old). I replaced mine before I had an issue. The net result is I pay approx $2600 year for a house valued at $850K.
I live 15 mins from the beach give or take a few.

 

[alarmguy]

Most of the insurance fraud centers on home roof replacements, a scheme orchestrated by roofing companies who do a roof inspection and claim your roof has prior storm or hail damage setting up a new roof covered by your insurer. That fraud has dwindled now that the Florida governor and legislature have introduced new legislation, but a lot of bogus claims have already been paid.

One must remember the that if I roofing company claims damage that the insurance company themselves inspects or is able to inspect the roof as well.
Meaning just because someone finds damage on a roof doesnt mean an insurance company automatically pays for a new one without the ins agency inspecting it.
So if bogus claims have been paid, it is the laziness of the insurance company to not bother and allow the claim to go through.

Unless you have a link as to this new legislation nothing changes what I wrote above. I read over legislation regarding recent home insurance in Florida and see nothing about roof fraud. As it is right now, fraud is a serious crime.
There are protections here in this legislation as to how a roof deductible will apply but there isnt anything else that can be done if you think about it. There is either roof damage or there isnt. If someone is a criminal committing fraud or insurance fraud, they need to be caught and prosecuted, no different than any other part of the country and not exclusively a Florida issue.

Governor DeSantis Signs Consumer Protection Legislation to Support Florida Policyholders When Disaster Strikes

www.flgov.com

 

[Ausfahrt]

Here's my Florida USAA story.

Back around 2010 I replaced my old weathered shingle roof on our Florida home with a new lifetime warranted metal roof. One of the selling points was that the new roof would lower the insurance premiums because it was less likely to be damaged in a storm.

So after I got the new roof I called USAA to inform them and they promptly raised my premium citing increased replacement costs. True story.

 

[nomas]

Here's my Florida USAA story.

Back around 2010 I replaced my old weathered shingle roof on our Florida home with a new lifetime warranted metal roof. One of the selling points was that the new roof would lower the insurance premiums because it was less likely to be damaged in a storm.

So after I got the new roof I called USAA to inform them and they promptly raised my premium citing increased replacement costs. True story.

I believe it .

 

[Tharber]

These are contractor driven scams initiated by 'gypsy companies' that get th homeowner to sign over their rights, file a claim and if the insurance carrier balks, they sue them. Most companies are not going to fight that..

Here is the latest bill:

Statutes & Constitution :View Statutes : Online Sunshine

Building code states:

Florida Building Code – Existing Building §706.1.1:

Not more than 25 percent of the total roof area or roof section of any existing building or structure shall be repaired, replaced or recovered in any 12-month period unless the entire roofing system or roof section conforms to requirements of this code.

This is the problem and if it were qualified that the replacement costs are to be pro-rated, then these scamm companies would be done.

TH

 

[Ausfahrt]

Stay out of Florida, it’s paradise lost.

Yes.

The Florida that people in Michigan have in their heads:

The real Florida:

 

[NormanBuntz]

These are contractor driven scams initiated by 'gypsy companies' that get th homeowner to sign over their rights, file a claim and if the insurance carrier balks, they sue them. Most companies are not going to fight that..

Here is the latest bill:

Statutes & Constitution :View Statutes : Online Sunshine

Building code states:

Florida Building Code – Existing Building §706.1.1:




This is the problem and if it were qualified that the replacement costs are to be pro-rated, then these scamm companies would be done.

TH

Thank you for the clarification. The "assignment of rights" that these shyster roofing companies used in Florida was a key element of the fraud. This method was used by many roofing companies, not just "gypsy" or fly by night contractors. When a roofing guy knocked on your door unsolicited and offered to give you a "free roof inspection," that's how the scheme usually started.

 

[The Critic]

Latest information I just learned about USAA homeowners insurance in Florida. Where some or most companies formerly allowed a homeowner to insure a home for 80% of its calculated replacement cost and STILL have replacement cost coverage that would cap at plus 25%, now USAA has limited that to 96% of the formulated replacement cost in Florida and California ONLY. They say it's a result of increasing claim costs and risks for residents of those states. Just another example of inflation in the USA.

This is pretty simple - they're simply tightening up their standards on valuation. If a building is not insured to value, they're leaving money on the table.

It is actually pretty smart of them. If you want replacement cost, you should pay for replacement cost.

 

[alarmguy]

...

This is the problem and if it were qualified that the replacement costs are to be pro-rated, then these scamm companies would be done.

TH

Insurance companies would love this, no longer would they be reasonable for full replacement costs (minus a deductible). It would never happen (though never, never happens*LOL*), countless homeowners would be stuck in debit to replace roofs after a storm.
Big win for the insurance industry so maybe it would happen.

 

[alarmguy]

Stay out of Florida, it’s paradise lost.

... and please do not stop in the coastal Carolina area!

 

[Ausfahrt]

... and please do not stop in the coastal Carolina area!

Halfbacks.

People who move from northern states to Florida and hate it enough to move half way back.

 

[alarmguy]

Halfbacks.

People who move from northern states to Florida and hate it enough to move half way back.

Yes, I know! Quite a few here!
But then again, we escaped the NY metro area 16 years ago ourselves. Went straight to the Carolinas though. Resent downsize we ALMOST settled on the FL border in Yulee ... glad we stayed in the Carolinas but this time at the coast.


You cant image how fast its growing here... maybe... insane amount of building going on but tons of open land (so far) ... and yes, home insurance is starting to get concerning like many places.